Nifty View for 17.11.2011

Today we opened with gap down and went down to make new low of 4997.50 on Nifty futures.We had some short covering happening in two tranches which looks as a temporary bottom of this fall.The fag end was dramatic and we recovered all lost ground to post a gain of one point on Nifty future.The daily trend is still down below the 20 SMA of 5202.The move if it crosses the -BB1 level of 5097 we may try to reach the 20 SMA depending on the strength of recovery.The fibo retracement levels of this move from 5350 are 5112.5(23.6%),5158(38.2%) and 5194(50%) which is coinciding the 20 SMA level of 5202.Also the wave structure shows three waves for the down move.wave 1 from 5400 to 5252(148 points,3 days),wave 2 from 5252 to 5350(98 points,3 days) and wave3(assuming its completed) 5350 to 4997.50(352 points,5 days).If the third wave is completed we may see recovery for 2 days atleast with pretty sideways action with a minimum retracement upto 5158(38.2%).

Spot Nifty levels for intra-day trade on 17.11.2011
No trade between 5013 and 5048(to avoid whipsaws)
Buy above 5048 with SL of 5028 for targets of 5066-5084-5102-5119
Sell below 5013 with SL of 5033 for targets of 4995-4977-4960-4942
Happy Trading !